Market News

Beef ends higher pork is lower

Cattle country was quiet on Tuesday afternoon with bids and asking prices still not well defined, although a few showlists have been priced around 174.00 in the South and 270.00 plus in the North. Significant trade volume will probably be postponed until Thursday or Friday. The cattle kill was estimated at 112,000 head, 5,000 more than last week, but 8,000 below a year ago.

Boxed beef cutout values were steady on choice, and higher on select on light to moderate demand and offerings. Choice beef was up .02 at 254.29, and select was 1.23 higher at 241.26.

Chicago Mercantile Exchange live cattle contracts settled 45 lower to 35 points higher. Futures contracts bounced above and below unchanged price levels with very little long term direction developing. Most of the activity was focused on the idea the cattle market has been overbought given the rally higher over the last week. This correction if you can call it that, may help to realign traders with a clearer longer term demand focus leading into the holiday season. December cattle settled .17 lower at 170.82, and February was down .02 at 172.07.

Feeder cattle ended the session 20 points lower to 40 higher. The front month November contract was able to hold onto moderate gains due to pressure in the grain complex. Other nearby and deferred contracts held light to moderate losses as the weakness in the live cattle futures eroded buyer support. November settled .40 higher at 240.42, and January was down .20 at 237.27.

Feeder cattle receipts at the Joplin, Missouri Stockyards on Monday totaled 3102 head. Compared to last week, steer and heifer calves and yearling heifers were steady, yearling steers were steady to 3.00 higher. Demand was good on a light to moderate supply. There were over twenty loads of yearlings in the offering with weigh-ups average to mostly full. Frigid temperatures curtailed the calf receipts as producers are busy with cold weather chores. Feeder steers medium and large 1 averaging 577 pounds brought 266.33 per hundredweight. 585 pound heifers brought 233.91.

Lean hogs were mostly lower in a range of 17 to 150 points. Futures traders concentrated on a correction following the aggressive surge in prices seen over the last few trading sessions. The market remains overbought given little or new information or direction from either supply or demand expectations. December settled .45 lower at 91.55, and February was down 1.50 at 91.12.

Barrows and gilts in the Iowa/Minnesota direct trade closed .20 higher at 87.34 weighted average on a carcass basis, the West was up .16 at 87.13, and the Eastern market was .18 higher at 83.97. Missouri direct base carcass meat price closed steady to 1.00 higher from 77.00 to 82.00. Midwest hogs on a live basis were steady from 55.00 to 64.00.

The pork carcass cutout value was down 1.43 at 94.16 FOB plant. Picnics and hams were lower, all other cuts were moderately higher.

Japan’s economy unexpectedly shrank for the second consecutive quarter, marking a technical recession in the world’s third-largest economy. This could be bad news for U.S. beef and pork exports.

Tuesday’s hog kill was estimated at 426,000 head, 39,000 more than last week, but 12,000 less than 2013.